NEW DELHI (Sputnik) — India's cabinet has approved ONGC Videsh Limited's (overseas arm of Indian Government owned Oil and Gas Corporation) purchase of an additional 11% stake in Russia's Vankor oil field. OVL will be paying US $930 million for an 11% stake in Vankorneft shares.
"The acquisition of stake in Vankorneft will provide 3.2 Million Metric Tons of Oil Equivalent (MMTOE) to OVL by 2017. It will also provide an opportunity to Indian public sector Oil and Gas companies to acquire new technologies from Rosneft," a statement released by the Indian government read.
Last week, the Indian government had approved a purchase by an Indian Consortium comprising of Oil India Limited, Indian Oil Corporation Limited and Bharat PetroResources Limited of a 23.9% stake in Vankorneft at a cost of USD 2.02 billion. Earlier in May 2016, OVL completed the formalities on the acquisition of a 15% stake in Vankorneft at a cost of USD 1.284 billion. With the additional 11% stake, Indian companies together own 49.9 percent of Vankorneft.
Vankor is Russia's second largest field by production and accounts for 4% of Russian production. The daily production from the field is around 421,000 barrels per day of crude oil on an average. With a total 26% stake, OVL's share of daily oil production from Vankor will be about 110,000 barrels per day.